UK Pension Fund Embraces Bitcoin with $65M Investment

An unnamed UK pension fund made a $65 million investment in Bitcoin, representing 3% of its total assets.

This is reportedly the first time a British defined benefit (DB) pension scheme has ventured into cryptocurrency. The investment was confirmed by pension consultancy Cartwright and reported by Corporate Adviser.

Strategic Allocation for Long-Term Growth

The funds trustees reportedly engaged in a rigorous due diligence process, addressing essential considerations such as Environmental, Social, and Governance (ESG) factors, security concerns, and the investment case for Bitcoin.

According to Glenn Cameron, Cartwright's head of digital assets, the decision aligns with the pension fund's 10-year investment horizon, viewing Bitcoin as a hedge against economic volatility and a means to diversify the funds portfolio.

Sam Roberts, Cartwrights director of investment consulting, explains that the investment is part of a forward-thinking approach to ensure long-term growth and stability.

“Trustees are increasingly looking for innovative solutions to future-proof their schemes,” Roberts explained. “This bitcoin allocation is a strategic move that not only offers diversification, but also taps into an asset class with a unique asymmetric risk-return profile.”

The firm is also planning to launch a Bitcoin Employee Benefits scheme, allowing employers to contribute Bitcoin directly into wallets for their staff. According to Cartwright, five companies have already expressed interest in this scheme.

Catching Up with Global Peers

Cartwright is now urging UK institutional investors to explore Bitcoin investments to avoid lagging behind their international counterparts. Notably, several pension funds and large financial institutions worldwide have already taken steps to integrate Bitcoin into their portfolios.

In the United States, for example, the State of Wisconsin‘s pension plan recently made its first Bitcoin allocation, though at a modest 0.1% of its total assets. By contrast, the UK pension fund’s 3% allocation signals a bolder stance on Bitcoins potential.

Beyond Bitcoin, other cryptocurrencies such as Ethereum are gaining traction. In the U.S., Michigans pension fund recently disclosed investing $10 million in Ethereum ETFs. Meanwhile, major global banks are developing products that could eventually include XRP, Litecoin, and Solana, broadening the horizon for institutional crypto investment.